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[pib] Central Consumer Protection Authority (CCPA)

Why in the News?

The Central Consumer Protection Authority (CCPA) has imposed a penalty of ₹2,00,000 FirstCry for false and misleading price representations on its e-commerce platform.

Background of the Case: You Must Know

  • Complaint: Products were displayed with the claim “MRP inclusive of all taxes,” but additional GST was levied at checkout.
  • Effect: Misled consumers by showing higher discounts than actually offered.
  • Findings:
    • A product advertised at 27% discount was effectively sold at 18.2% discount after GST.
    • Such pricing amounted to misleading advertisements (Section 2(28)) and unfair trade practices (Section 2(47)).
  • Dark Pattern: The practice qualified as “drip pricing”, a dark pattern under the Guidelines for Prevention and Regulation of Dark Patterns, 2023.
  • Violation of E-Commerce Rules: Contravened Rule 7(1)(e) of Consumer Protection (E-Commerce) Rules, 2020, which mandates displaying the total price inclusive of all charges and taxes upfront.

About Central Consumer Protection Authority (CCPA):

  • Established: Under Section 10 of Consumer Protection Act, 2019 (effective July 20, 2020).
  • Nodal Ministry: Ministry of Consumer Affairs, Food & Public Distribution.
  • Functions & Powers:
    • Protects and enforces consumer rights as a class.
    • Prevents unfair trade practices and misleading advertisements.
    • Can initiate class-action suits (recalls, refunds, license cancellation).
    • Investigates through Investigation Wing headed by a Director-General.
    • Can order discontinuation of unfair practices and impose penalties.
  • Composition of CCPA: Chief Commissioner (Head); 2 Commissioners-
    • One for goods-related issues.
    • One for services-related complaints.
[UPSC 2023] Consider the following organizations/bodies in India:

1. The National Commission for Backward Classes

2. The National Human Rights Commission

3. The National Law Commission

4. The National Consumer Disputes Redressal Commission

How many of the above are constitutional bodies?

(a) Only one * (b) Only two (c) Only three (d) All four

 

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